L'Or?al Acquires Australian Aesop for $2.5 Billion "Record High"

French company L'Or?al has completed the largest-ever acquisition by purchasing Australian cosmetics firm Aesop for 3.3 trillion won.

According to Bloomberg and other sources on the 4th (local time), Natura & Co, the Brazilian parent company of Aesop, which owns Avon and The Body Shop, announced that it will sell Aesop to L'Or?al for $2.53 billion (approximately 3.3 trillion won).

According to Dealogic, this deal is the largest acquisition in L'Or?al's history. L'Or?al previously acquired Yves Saint Laurent Beauty for $1.7 billion in 2008.

Founded in Melbourne, Australia in 1987, Aesop offers a diverse lineup ranging from skincare and body care to perfumes made with plant-based ingredients.

As of the end of last year, the global number of stores reached about 400, and last year's sales recorded $537 million, an increase of about 21% compared to the previous year.

It has shown double-digit sales growth evenly across all regions, and notably, the two stores opened in China last year recorded the highest sales among the entire brand.

L'Or?al stated in a press release that Aesop has enormous growth potential, especially in China.

[Image source=Reuters Yonhap News]

L'Or?al, the world's largest cosmetics company owning brands such as Lanc?me, Maybelline, and Yves Saint Laurent, has recently been focusing on the high-end market, which is less affected by economic downturns.

Jefferies analyst Molly Willungerck told Bloomberg, "L'Or?al mainly acquired early-stage brands, but their strategy has changed."

Natura & Co is Brazil's largest cosmetics company, operating in over 100 countries. Fabio Barbosa, CEO of Natura & Co, said, "With this sale of Aesop, we will reduce debt and focus on finding other paths for growth."

This content was produced with the assistance of AI translation services.